Dr. Reddy's Laboratories after market hours on Tuesday announced it has been asked to pay $46.25 million to Australia-based Hatchtech as part of an asset purchase agreement.
International Center for Dispute Resolution, an international arbitrator has ordered a subsidiary of Dr. Reddy's Laboratories to pay nearly $46.25 million (towards milestones, interest and fees) to Hatchtech, in relation to the asset purchase agreement entered into between the parties in 2015.On 27 July 2020 the company had announced the receipt of an approval of XEGLYZE (abametapir) lotion, 0.74%, a 505(b)(1) NDA by the U.S. Food and Drug Administration (USFDA). Such approval triggered the contractual pre-commercialization milestone of $20 million payable to Hatchtech Pty. which is included in the above mentioned award and has already been accounted for and charged off in the company's financial statements for the financial year 2020-21.
Dr. Reddy's Laboratories said that it is exploring all legal options to challenge the award.
Dr Reddy's Laboratories is an integrated pharmaceutical company. Through its three businesses - pharmaceutical services & active ingredients, global generics and proprietary Products.
On a consolidated basis, Dr Reddy's Laboratories' net profit dropped 28% to Rs 553.50 crore on 7% increase in revenues to Rs 4,728.40 crore in Q4 March 2021 over Q4 March 2020.
Shares of Dr. Reddy's were trading 0.43% higher at Rs 5,438.25 on BSE.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content